General Cable Corp. announced today an agreement in principle to acquire certain assets of Draka Holding's Comteq b...
January 30, 2004
General Cable Corp. announced today an agreement in principle to acquire certain assets of Draka Holding’s Comteq business in North America.
Comteq, based in Franklin, Mass., has strong technical and manufacturing capabilities in electronic cables, as well as high end data products, the company said in a statement.
The agreement includes brands such as Helix and Hi-Temp. Completion is scheduled for the first quarter of 2005, subject to satisfactory due diligence and completion of a definitive purchase agreement.
The acquisition price for the manufacturing equipment and intellectual property will be in the range of US$5 million to US$10 million and is expected to bring annual productive capacity of approximately US$35 million to US$40 million.
“The acquisition should significantly expand our position and capabilities in a number of high value added product areas,” according to Greg Lampert, General Cable’s vice president and general manager, Carol Brand Products.
General Cable intends to continue operations at the Franklin location.
“The assets will also support the high end data cable growth we expect as a result of our recently announced alliance with Panduit Corporation,” added Jim Barney, General Cable’s senior vice president and general manager, communications.
As part of the agreement signed earlier this month, the two companies will share research and product development and participate in joint marketing and sales programs.